Good morning, ladies and gents. Our IPO scene is still going strong despite the regional volatility, with Sport Clubs pricing its main market offering, and Hawyia Auctions gaining 8% on its first day in the parallel market. The tourism sector also reported a strong year in 2024, as international visitors spent a record SAR 169 bn. Meanwhile, UBS’ Global Wealth Report put our m’narie population as the largest in the region last year. Let’s dive in.

BUT FIRST- With the world’s press still processing the US’ strikes on Iran the day before, the question everyone is trying to answer is: what happens next? Regional security and the global economic outlook now depend on how Tehran decides to respond, with the possibility of Iran choosing to close the Strait of Hormuz or target US assets and personnel already sending diplomatic efforts and energy markets into a spin — although not by as much as some had feared.

So far, Iran’s response has been limited to exchanging missiles with Israel. Iranian Supreme Leader Ayatollah Ali Khamenei has allegedly decided not to retaliate against the US directly and “risk a harsher response that wreaks more destruction on the republic,” Iranian government insiders told the Financial Times .

But if Iran does decide to close the Strait of Hormuz, crude oil prices could soar past USD 130 per barrel, with the cutting off about 30% of the world’s daily oil supply and 20% of global LNG trade violently ramping up energy costs across the globe, according to Bloomberg analysts. In response to Iranian state TV reports that the country’s parliament had voted to approve the closing of the energy corridor, US Secretary of State Marco Rubio urged Beijing to pressure Iran to keep the passage open. (Bloomberg | Reuters | New York Times | Financial Times | Wall Street Journal | Guardian)

MEANWHILE- Saudi Arabia expressed “great concern” over the US targeting of Iranian nuclear facilities, reaffirming its condemnation of the violation of Iran’s sovereignty while calling for restraint, de-escalation, and greater international efforts to find a political solution that ensures regional stability.

WEATHER- Riyadh is expected to see a high of 44°C and a low of 30°C today, while Jeddah’s mercury will go as high as 39°C and as low as 29°C. Makkah will see a 42°C high and 31°C low.

HAPPENING TOMORROW-

The two-day Tech-ecO-System Summit kicks off tomorrow in Riyadh. The event, held under the theme For Tomorrow, brings together more than 30 speakers and 150 attendees across over 15 industries to discuss market insights, emerging technologies, and potential JVs.

PSAs-

The updated Electricity Service Provision Guide is now in effect, published in the official gazette on Friday. Consumption tariffs now stand at SAR 0.18-0.30 per kWh for residential units, while commercial units are billed SAR 0.22-0.32 per kWh.

Key revisions include capping billing correction periods at three months, reducing the disconnection grace period to 60 days from 90, updating service connection requirements, and introducing guarantees for a continuous electricity service for customers with urgent electricity needs.

WATCH THIS SPACE-

Hawyia Auctions’ share price gained 7.9% on its Nomu debut yesterday, closing at SAR 14.02. This marks the third Nomu IPO this month — after Asas Makeen and Anmat Technology ’s listings — to buck a wider trend of slumping debuts on the parallel market.

The stock is still subject to the usual Nomu debut rules — a 30% price fluctuation cap and a static 10% band over the first three sessions, followed by a 10% daily circuit breaker.

REFRESHER- The real estate marketing firm floated a 12% stake, or 2.4 mn shares, at SAR 13 apiece in a secondary offering that was 3.1x oversubscribed. The company’s three selling shareholders will take home up to SAR 31.2 mn in proceeds, before some SAR 3.6 mn are used to cover IPO-related costs, implying a market cap of SAR 260 mn at listing.

DATA POINTS-

#1- King Khalid International Airport maintained its 82% compliance rate lead among international airports serving over 15 mn passengers annually in May, the General Authority of Civil Aviation said on X yesterday. King Abdulaziz International Airport caught up to 82% during the same month, up from 73% last month),

Among airports handling 5-15 mn passengers a year, King Fahd International Airport recorded a 91% compliance rate, while Prince Mohammed bin Abdulaziz International Airport achieved 82%. All international and domestic airports with fewer than 5 mn passengers met 100% of Gaca’s standards, except for Al Jouf International Airport, which scored 91%.

#2- King Fahd University of Petroleum and Minerals broke into the global top 100 of the QS World University Rankings 2026 for the first time, jumping to the 67th spot globally this year, from 101st in 2025, according to a press release seen by EnterpriseAM.

King Saud University also rose to 143rd place, entering the top 200 this year, while King Abdulaziz University ranked 163rd, dropping 14 places. The Kingdom is targeting five universities in the top 200 by 2030.

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